Capital Allowances Act 2001 section 218A

Further restriction on annual investment allowance

Section 218A provides an anti-avoidance rule that prevents annual investment allowances being claimed where arrangements have been entered into mainly to obtain an allowance that would not otherwise be available.

• This section targets arrangements entered into wholly or mainly for a "disqualifying purpose"
• A disqualifying purpose means the main purpose, or one of the main purposes, is to enable a person to obtain an annual investment allowance they would not otherwise be entitled to
• Where such arrangements are identified, the annual investment allowance must not be made
• Any annual investment allowance already granted under such arrangements must be withdrawn